Offer price v asking price - what's realistic these days?

jimpix12

Surrey_EA wrote: »

In most cases that I deal with the house itself is the cheap bit, the land is where the value lies.

It's far easier to accurately determine value for a property if it's in an area where lots of similar properties have recently been sold, and a trend can be established.

When the property is relatively unique, or very few sales of similar homes have taken place it is more difficult to work out market value.

Is it really that difficult? I imagined you just invented numbers out of the sky until someone bites. Said half in jest.

Surrey_EA

agrinnall wrote: »

(or indeed the English system if there hadn't been so much opposition to HIPs).

I don't recall HIPs ever including a valuation.

Interestingly, I receive several calls a week from surveyors asking me to let them have information on comparable sales, and to give my opinion on property valuations that they are carrying out.

Valuing property is rather more art than science.

Surrey_EA

spunko2010 wrote: »

Is it really that difficult? I imagined you just invented numbers out of the sky until someone bites. Said half in jest.

Ultimately it's the vendor who decides what the property goes on the market for. Most of my clients feel like they're sold for a price that's too low, whereas most buyers feel like they've paid too much. Funny that!

jimpix12

That's interesting Surrey_EA as I'd feel terrible if I'd agreed to overpay.

I have a question for you, if you don't mind, please answer truthfully Have you ever made up an offer? I'm convinced that it happens, even though most EAs say it doesn't any more.

ellie27

Beancounter wrote: »

I am in Scotland so work under a different system, how accurate are the offers you accept compared to valuations? Is aggrinall's example above typical.

I am in Scotland and I have come across some home report valuations that are outrageous values and just appear to have been made up! The seller we are buying from no doubt expected to get close to that price but has now accepted 17% less than that valuation.

Mickygg

Another how much should I offer question.

Everyone prices houses differently, some overprice others put on at a price to sell quickly. You do your own research, look at the house and offer what you are prepared to pay.

Asking random people what they think when they haven't seen the house is pointless.

As said on every single one of these how much to offer threads, a house is worth what someone is prepared to pay!! It is that simple.

agrinnall

Surrey_EA wrote: »

I don't recall HIPs ever including a valuation.

You could be right, I was in Scotland so never saw one (and I suspect most people in England also never saw one). The wikipedia page on HIPs hints that the Home Condition Report might have included a valuation but it looks like they never happened.

Surrey_EA

spunko2010 wrote: »

That's interesting Surrey_EA as I'd feel terrible if I'd agreed to overpay.

I have a question for you, if you don't mind, please answer truthfully Have you ever made up an offer? I'm convinced that it happens, even though most EAs say it doesn't any more.

Honestly, never ever. In the 16 years I have been doing this I can truthfully say I have not.

I'm not pretending it doesn't happen, but I believe it is far rarer than many think.

As an EA it makes practically no financial difference to me whether someone pays an extra £10k for a house. Of course I want to do the best job I can for my client, but I risk jeopardising a sale to a genuine buyer if I invent a fictitious offer.

I have not checked the legislation recently, but my memory tells me that it is in breach of the Estate Agents Act of 1979 to invent an offer. But I do realise from a buyers perspective it is very difficult to prove one way or the other.

I don't doubt it happens every now and again, as there are a lot of EAs that give the rest of us a bad name, but I believe it is not as common as people suggest.